India has capped the duty-free import quota for electric vehicles under the free trade agreement with the UK to a few thousand units only and sensitivity of the sector has been taken care of, an official said on Tuesday. India and the UK on Tuesday sealed a landmark free trade agreement that will lower tariffs on 99 per cent of Indian exports and would make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket.
The aim is to double the two-way commerce by 2030.
Tariffs on automotive imports will go from over 100 per cent to 10 per cent under quotas on both sides, benefiting companies such as Tata-JLR.
The official also said that the duty-free access to imports of internal combustion engine vehicles from the UK is also limited to a pre-defined quota.
"The duty-free quota on EVs is limited only to a few thousand. No out-of-quota duty reduction for EVs. The sensitivity related to EVs has been taken care of," the official, who did not wish to be named, said.
Further, the out-of-quota duty on internal combustion engine vehicles will be reduced gradually over a longer period of time, thereby helping Indian industries to absorb the incremental increase of imports from the UK.
"As the fourth-largest automobile producer globally, India possesses the scale and strategic depth to emerge as a global leader in the automotive value chain," the official said.
Despite India's strong manufacturing base, its share in the globally traded auto market remains subdued, highlighting a vast scope for expansion.
The duty-free access to the UK market for internal combustion engine vehicles has the potential to boost India's auto and auto components exports.
The total electric passenger vehicle retail sales in India grew by 56.87 per cent in April this year to 12,233 units compared to 7,798 units in the same month last year, according to the latest data released by the Federation of Automotive Dealers Associations (FADA).
Tata Motors continued to lead the market with 4,436 units of electric PVs sold last month, although JSW MG Motor India and Mahindra & Mahindra (M&M) are catching up with 3,462 units and 2,979 units respectively, as per FADA data collated as on May 2 this year.
The official also said sensitive industrial goods like plastics, diamond, silver, base stations, smartphones, television camera tubes, optical fibres, optical fibre bundles and cables are under the exclusion list of the agreement and no duty benefits would be provided on these under the FTA.
In alcoholic beverages, the official said, Scotch Whisky constitutes only 2.5 per cent of the total whisky market.
The tariff reduction being announced by India on the imports of Scotch Whisky from the UK is over a longer period of time (10 years) and even after that, it will attract significant customs duty of 40 per cent.
"The incremental increase in imports of Scotch Whisky, therefore, would not significantly affect the domestic market," the official said, adding high duties on imported alcohol have affected the level of foreign direct investment (FDI) in the liquor industry.
Liberalisation of duties would invite the UK's expertise in terms of spirit/wine making, quality control, marketing and consumer awareness.
Hybrids, EVs Major Contributer To Sales Of Imported Cars In South Korea
In terms of fuel type, hybrid vehicles led the sales, accounting for 63.7 percent, followed by EVs and gasoline models, at 17.3 percent and 17.1 percent, respectively.
- IANS
- News
- May 08, 2025 17:17 pm IST
Published OnMay 08, 2025 17:00 pm IST
Last Updated OnMay 08, 2025 17:17 pm IST
The number of imported vehicles sold in South Korea last month dropped slightly from a year earlier, but eco-friendly vehicles such as hybrids and electric vehicles (EVs) accounted for a record 81 percent of the total, industry data showed on Thursday. According to the Korea Automobile Importers and Distributors Association (KAIDA), a total of 21,495 imported cars were newly registered in April, down 0.3 percent from a year ago.
KAIDA attributed the decrease to price hikes and inventory shortages for certain brands, reports Yonhap news agency.
By brand, BMW retained the top spot with 6,710 units sold, followed by Mercedes-Benz, Tesla and Lexus, with 4,908, 1,447 and 1,353 units, respectively.
In terms of fuel type, hybrid vehicles led the sales, accounting for 63.7 percent, followed by EVs and gasoline models, at 17.3 percent and 17.1 percent, respectively. Diesel models accounted for 1.9 percent of total imports.
By individual model line, Mercedes-Benz's E-Class topped the sales chart with 2,151 units, followed by BMW's 5 Series and Tesla's Model Y, with 2,040 units and 804 units, respectively.
Meanwhile, the sale of imported vehicles in South Korea gained 24.4 percent from a year earlier in February, helped by the announcement of this year's government subsidies for electric vehicles (EVs), industry data showed recently.
The number of newly registered imported cars came to 20,199 units in February, up from 16,237 units from a year ago, according to the Korea Automobile Importers & Distributors Association. On a monthly basis, the tally represents a 32.6 percent surge from January.
In terms of fuel types, hybrid registrations totalled 13,013 units, or 64.4 percent of all new imported cars. Electric, gasoline and diesel model registrations followed at 18.6 percent, 16 percent and 1 percent, respectively.
BMW was the most popular brand, selling 6,274 units, followed by Mercedes-Benz, which sold 4,663 units.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)